Successful Performance Management System


Today’s guest blog is from Shamik Vora,Founder of HR4India where he presents his thoughts on successful Performance Management System in two parts!

Part I

While key HR systems like Recruitment Management System and Training & Development Management System function like a supply chain of talent, Performance Management System is the system that must function like demand chain of business.

Traditional view of HR function has been that of a supply chain of talent, where HR is expected to supply the talent pool for the business need. Such a supply chain for sure tends to take “employee’s view of business” because ‘employees are their internal customers’.

Now imagine what happens when same HR is expected to take a ‘business view of the employees’!

It is like looking at the same pipe from two different ends, the ‘People’ end and the ‘Business’ end. And since it is the same pipe we obviously come across same stations (terms) just that what was on your right while traveling from one end to the other, now comes on your left side while traveling in the opposite direction.

Let me give you example

Sourcing of talent becomes Leadership Pipeline Development:

In an every-day-organization, if there is a need of staff; system will say ==> get the manpower requisition approved ==> HR will post job on line or share requirement with consultant ==>Get resume vetted by the manager ==> Coordinate interview and ==> If manager finds the candidate suitable, fine; else move on to next candidates.

Contrast this with a performance-driven-organization. Manager must get the approval for manpower but now manager is expected to find her team member and not depend on recruiter alone. Manager can of course make recruiter a ‘partner’ in sourcing of talent. The real benefit comes because the line manager is now not only responsible for top or bottom line but would want to ensure that a ‘back-up’ within team is created so that even if there is a delay in finding right fit, her deliverables do not suffer.

Part II

Remember, we are traveling from demand side and not from supply side of talent and such a view can help us create a better performing organization.

Job Description becomes KRA and KPI

In an every-day-organization, when an employee joins, usually HR hands out a Job Description listing all his duties and responsibilities. So now the department is ‘supplied’ with an employee who supposedly knows his duties and responsibilities.

In a performance-driven-organization, duties and responsibilities are not specified but employee is allowed an area to perform (KRA) and indicators (KPI) are shared that will tell the employee whether he is successful or not. This, on one hand gives freedom to act and on the other places ‘demand’ on the talent.

Training becomes Learning

This is more or less obvious, onus moves from organization supplying the competencies to the business to talent trying to acquire the competencies in demand due to business.

Command and Control becomes Joint Planning, Execution and Coaching

An every-day-organization stop at making ‘resource’ or at best ‘trained / skilled resource’ available to business. Since employees use job description and say ‘this is not my job’, management becomes busy in explaining ‘why it is your job’.

In a performance-driven-organizations you will find that people develop because of shared planning, follow up and feedback. This means demands are placed on the talent, yet it is supported to meet the business demand.

In all of the above cases you will see that Return On HR Investment is much higher in case ‘demand chain’ compared to the supply chain of talent. So use Joint planning, execution, coaching. Define KRAs, KPIs in stead of job descriptions. Use mentoring in stead of training and develop leadership pipeline in stead of recruitment. This will create a successful performance management system.

Screen Shot 2013-09-01 at 4.54.05 PMShamik Vora is Founder & Chief Coordinator of this special project He firmly believes that HR in India must understand the need of Indian business and Entrepreneur and create congruence with workforce practices, as against HR practices which have evolved around business practices in the US and the west.

This is a pioneering effort by Mr. Shamik Vora to drive workforce research based compilation of Indian HR practices which are influenced by compliance needs of Indian employment laws and constraints faced by entrepreneur.

Mr. Vora is currently heading HR, IT and Ecommerce function at Mumbai headquartered, iconic retail brand, The Bombay Store. His current focus is executive coaching, mentoring and change management to drive culture of execution and accountability. In the past he headed the function for jewellery brand like dDamas and was instrumental in setting up function for Damas Jewllery in India.



  1. Rakshita Dwivedi says:

    Very interesting read ,Shamik. Loved the supply-demand concept!!

  2. Nice information regarding performance management!

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